Liabilities 100 Million -5 Billion US Dollars, Luxury Goods Department Barneys Filed For Bankruptcy Protection Application

In August 6th, Barneys New York Inc, a luxury department store operator in the United States (hereinafter referred to as Barneys), filed a bankruptcy filing application for Chapter 11 to the Southern District Court of New York.

Documents show that Barneys has received $75 million from Financial Services Company Hilco Global and Gordon Brothers Group, a subsidiary of consulting firm, and will remain in operation in the process of bankruptcy reorganization. In the future, Barneys will gradually close 3 physical stores in Chicago, Las Vegas and Seattle, as well as 5 small concept stores and 7 discount stores Barneys Warehouse, but New York Madison Avenue flagship store and four other flagship stores will continue to camp.

Court documents show that Barneys's assets and liabilities range from $100 million to $500 million.

In recent years, Barneys has been looking for buyers and new investors, hoping to ease the huge impact of soaring rental and flagship stores in Manhattan, New York, on the company's business. In July this year, "gorgeous" reported Barneys and Kirkland&Ellis LLP, a well-known law firm, to explore various potential options to tide over the difficulties.

Daniella Vitale, chief executive of Barneys, said that filing for bankruptcy protection would help the group to complete restructuring and optimize its operational capability, and would be more conducive to investor acquiring company. At present, many investors from non department stores show interest in acquisitions.

This time, investment bank Houlihan Lokey and M-III Partners provide financial advisory services for Barneys.

Barneys was founded in 1923 by Barney Pressman, headquartered in New York, USA, originally a discount clothing store, and gradually transformed into a luxury men's department store. After the successful introduction of Italy luxury brand Giorgio Armani (Armani) into the US market in 1976, Barneys became famous. In the same year, the company opened a women's clothing department. In 1989, Barneys established a holding company with Japanese luxury goods department, Yi ddan, and officially entered the Japanese market. At the end of the 90s, Barneys had applied for a bankruptcy reorganization. In 2012, the group just completed a debt restructuring. At present, Barneys is owned by financier Richard Perry's hedge fund and investment company of Ron Burkle, a supermarket giant.

The rise of online shopping has made consumers less and less enter the physical stores, and the higher rents have also greatly damaged the profitability of some large department stores such as Barneys. Faced with the depressed market environment, these department stores are actively reforming, but some are still unable to escape the fate of bankruptcy.